Question: Please show step by step solution with explanations, thanks! 10-8 COST OF COMMON EQUITY AND WACC Palencia Paints Corporation has a target capital structure of

Please show step by step solution with explanations, thanks!

Please show step by step solution with explanations, thanks! 10-8 COST OF

10-8 COST OF COMMON EQUITY AND WACC Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its before-tax cost of debt is 8%, and its marginal tax rate is 25%. The current stock price is P. = $22.00. The last dividend was D. $2.25, and it is expected to grow at a 5% constant rate. What is its cost of common equity and its WACC? otic chown here Its cost of common

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